FTC Refers Complaint Against Snapchat to DOJ Over “My AI” Feature
In an unusual move, the Federal Trade Commission has released a statement announcing that it has referred a complaint against Snapchat owner Snap Inc. to the Department of Justice.
The Commission was vague on the details, but said that it ” pertains to the company’s deployment of an artificial intelligence powered chatbot, My AI, in its Snapchat application and the allegedly resulting risks and harms to young users of the application.”
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My AI uses OpenAI tech to let Snapchat users chat and ask questions within the Snapchat app. It launched in 2023, and the company says that millions of its users use the feature.
A spokesperson for Snap tells The Hollywood Reporter that the complaint “is based on inaccuracies, and lacks concrete evidence. It also fails to identify any tangible harm and is subject to serious First Amendment concerns.”
DOJ referrals are not typically made public until charges are filed, and the FTC said in its statement that “although the Commission does not typically make public the fact that it has referred a complaint, we have determined that doing so here is in the public interest.”
The referral — made days before the Biden administration is set to hand over control of the DOJ to the Trump administration — may not go anywhere, particularly given a statement from Republican commissioner Andrew Ferguson, who said that he “did not participate in the farcical closed meeting at which this matter was approved.”
Ferguson is set to replace Lina Khan as FTC chair when Trump is inaugurated.
The Commission voted 3-0-2 to authorize the issuance of the statement, with Ferguson and Commissioner Melissa Holyoak recorded as absent.
“Because the complaint itself remains non-public, I cannot at this time release a detailed analysis of its many problems,” Ferguson added. “But for now, I can say that the complaint’s application of Section 5 of the Federal Trade Commission Act is not only wrong as a matter of statutory interpretation, but is also in direct conflict with the guarantees of the First Amendment.”
The FTC has been taking a close look at AI tech over the last year or so. Last year Reddit disclosed that the Commission had reached out about its deals to license AI training data for LLMs.
“Since introducing My AI, Snap has harnessed its rigorous safety and privacy processes to create a product that is not only beneficial for our community, but is also transparent and clear about its capabilities and limitations,” a Snap spokesperson said in a statement. “Unfortunately, on the last day of this Administration, a divided FTC decided to vote out a proposed complaint that does not consider any of these efforts, is based on inaccuracies, and lacks concrete evidence. It also fails to identify any tangible harm and is subject to serious First Amendment concerns.
“While we share the FTC’s focus on ensuring the thoughtful development of generative AI, this complaint would stifle innovation and competition in a critical and growing sector of the economy,” the statement continued. “We look forward to working with the new Administration on AI policy that bolsters US innovation while protecting our community.”
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